FOR IMMEDIATE RELEASE 

REDAC RESPONDS TO WORLD TRADE CENTER DISASTER

BROOKLYN, NY, February 14, 2002--Twelve small businesses that sustained physical or economic damage as a result of the attacks on the World Trade Center have received 13 disaster loans totaling $105,000 from the Regional Economic Development Assistance Corporation (REDAC).

"When the impact of 9-11 became apparent to everyone, we wanted to do something useful," said Joan Bartolomeo, president of Brooklyn Economic Development Corporation (BEDC), which administers the REDAC program. "Since our niche has been serving small businesses, it was logical for us to focus on helping the small businesses impacted by the disaster."

The agency has talked to nearly 200 companies and closed 13 loans, which range from $5,000 to $50,000 at 7.5 percent interest. Businesses taking advantage of the loan programs are varied, and include a software company, employment agency, architectural firm, retailers, restaurants, and a fabric store. Most of the loan recipients have been in business for less than five years and have fewer than 20 employees. 

Businesses receiving emergency or disaster loans include:

• East Village Oven Corporation, MANHATTAN
• Market Advisory Group Corporation, MANHATTAN
• Tracer Technologies, LLC, MANHATTAN
• Zoetics, Inc., MANHATTAN
• The Manifestation Glow Press, Inc., QUEENS
• Proprietary Media, Inc., MANHATTAN
• Orrea Beauty, Inc., MANHATTAN
• M Shop, MANHATTAN
• Esoteric Designers, QUEENS
• New Millennium Limousine, BRONX
• Joel H. Paul & Associates, MANHATTAN
• Nigerian Fabrics, BROOKLYN

"In the early stages, the needs were monetary, so our services naturally gravitated toward lending," Ms. Bartolomeo said. "We particularly want to thank the JP Morgan Chase Foundation and Citibank for grants they gave to us, which have enabled us to offer assistance to these businesses. Additionally, the New York City Economic Development Corporation and New York State Empire Development provided resources and guarantees that made the loans do-able."

World Trade Center Capital Access Disaster loans of up to $50,000 for physical or economic injury continue to be available to businesses in all five boroughs through REDAC. The loans must be used for business-related expenses such as physical reconstruction, payroll, inventory replacement, relocation costs, or equipment replacement. Businesses must demonstrate that their business was adversely impacted by the disaster.

"We feel we have made an impact in a small way," Ms. Bartolomeo continued. "But we still feel there are huge gaps that are not being met by existing programs and we will continue to work with the government and private agencies to deliver and develop programs that fill these gaps."

The REDAC mini-loan program was created in 1991 by the Brooklyn Economic Development Corp. (BEDC) and is one of the oldest nontraditional loan programs in New York City. Banks participating in the REDAC program include BPD International Bank, JP Morgan Chase, Citibank, Fleet Bank, M& T Bank, HSBC, Valley National, U.S. Trust Company, Deutsche Bank, and Sterling National Bank. The banks provide a line of credit to enable REDAC to make the loans and provide annual contributions for administrative overhead. The banks also sit on a loan review committee. In addition, Fuji Bank and Trust Company contributes to the program through a grant.

More information about the loan programs is available from Michael Sharp 718-522-4600 ext. 17.